Threat of substitute products or services • Although Sony has tries to differentiate their products through modern design, high quality graphic and superior technology, they still have threat of substitute product like iPod over Sony Walkman, iPad or Android or Tablet Game over Sony PlayStation, and HD DVD over Blu-Ray.
• Substitution like music download or streaming cause an effect on Sony recording music industry.
• Since the price is high consumer switching to other products which is close to the substitute.
• Sony need to think about competitors and customer loyalty too, so people can choose Sony over other substitute.